Monday, January 30, 2023

Fiscal rebellion against Biden: 14 states implement ‘flat tax’ and 9 eliminate their personal income tax

In 1987, at the height of economic liberalism under President Ronald Reagan, the state of Colorado eliminated your income tax brackets and converted it to a flat rate system or even tax, with the same type for all taxpayers. Since then, to this day, the said territory has maintained a single model, which greatly simplifies everything related to state taxation of income received by taxpayers who are still subject to the progressive model prevailing at the federal level, but your Let’s face it with a very simple framework. state tax.

Since then, other US demarcations have followed the same path, adopting a model that replaced the older progressive systems. even tax, Twenty years after the Colorado Reformation, Utah Moved tab. then came the change North Carolina, And since then, the list has continued to grow, it also includes Illinois, Indiana, Michigan, Pennsylvania why Massachusetts, has been done in the most recent improvement KentuckyWhich is applying a single rate of 5% on its income tax since 2019.

The year 2022 has given rise to many movements in one direction:

, Iowa It was implementing a system under which 9% was required from taxpayers, but between 2023 and 2026 it will consolidate a change to a model under which only a flat rate of 3.9% will be applied.

, Mississippi will introduce even tax It will be gradually reduced to 4% at the end of the legislature starting in January and next year.

, Georgia It will start at a single rate of 5.49% in 2023 and drop to 4.99% in the middle of this decade.

, Idaho It has already exhausted its four installments and is going to cap the state income tax at a single rate of 5.8%.

, Arizona It would be even more aggressive, as its rate would be barely 2.5%.

The list could go on and on, because I Missouri There are some legislative proposals that go further in this direction. oklahoma Changes in this regard can be announced next year. In Alabama, There hasn’t been a major movement, but its system is relatively simple, as it has barely three sections, so there are already some voices advocating for this type of reform.

The following map from the Tax Foundation details the current landscape:

state-flat-tax-trend-of-state-flat-income-tax-trend-november-20221.png

As can be seen, there is not only a strong advance equalize, but there is also Eight US Territories Where Personal Income Tax Doesn’t Even Apply at the state level, as in the case of Texas, Florida, Nevada, New Hampshire, Tennessee, Washington, Wyoming or Dakota del Sur, Taxpayers in these territories pay only the federal portion of the tax and their governments are financed only by the income that the tax equivalent of the VAT or IBI generates.

So, while Joe Biden insists on raising taxes at the federal level, there is a long list of state territories that go the opposite way and reduce their personal income tax until it is an even tax Or simply eliminate this lien altogether.

Nation World News Desk
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